The pressure for executives, managers and supervisors to stay on top of performance management (PM) is tremendous. However, the question is, do they understand the why of PM and its benefits? Why should they bother? After all, the people they manage are responsible working adults who don’t require monitoring like a group of third graders. Right? Well, er, umm, in some cases yes, in other cases, you would be amazed. The truth of the matter is that each member of an organization brings value, intelligence, and talent to an organization and its goals. Further, workers, especially the younger generation, want meaningful work. There is more at stake than one may realize.
In Peter Fischer’s book, Navigating the Growth Curve, the author suggests that business models should be profit-driven, people-oriented, and growth-smart. He goes on to suggest that people spend about 70% of their time at work. Now we can begin to understand the impact that PM can have on the organization, profits and people. Therefore, establishing a true PM system involving people in the organization’s goals, mission and vision drive performance to specific targets and higher levels. Once a year reviews are not a true PM system. Further, most managers dislike delivering them and usually hate HR for making them conduct them. However, a true PM system and meaningful work become a powerful force to meet the needs of the organization. Benefits from PM are realized organization wide, for supervisors/managers, and employees Let’s look at some specific benefits that a true PM system brings.
Organizational benefits include, increasing employee retention because it saves both time and money. Increasing employee productivity is the result of meeting strategic goals more quickly and accurately. Communications systems are integrated throughout the organization relaying cultural expectations in terms of behaviors and results that the organization values. In addition, workforce and succession planning produce better results.
Executives, managers and supervisors all benefit in a savings of time as there is less confusion and errors. Conflicts are at a minimum as managers have the ability to be clearer in instructions and the importance of tasks fitting into the organizational goals. In other words, employees understand the why of their tasks. Because of the ongoing coaching and communication of a true PM system, accountability is built in. This greatly reduces excuses for failed goals.
Again, because of the continuous communication of a PM system, employees have a better understanding of their strengths and weaknesses. Moreover, they are better able to assess themselves and expectations are clearer. This leads to improved employee competency and performance. A true PM system serves as a rudder during organizational change. Employees also realize a clearer career path and job satisfaction. This is clearly a win-win-win for the entire organization and its future.
So there is no need to dread annual performance evaluations or to hate HR. Having only annual evaluations is too narrow in focus to provide any real benefits to the organization or its valuable talent. A true PM system integrates goal setting, organizational strategies, performance reviews, individual/team performance plans, coaching, mentoring and continuous feedback. It doesn’t take a lot of time and you don’t have to be a rocket scientist to pull a PM system together. So stop hating HR and start gleaning the benefits from your true PM system.
Thank you for reading this blog. Questions or comments? Contact Diane at www.performstrat.com, call 404-320-7834, or visit www.performstrat.com Graphic Big Stock